NEW RESEARCH: One in three Canadian crypto-asset owners experienced fraud or scams, TMU study finds

Financial regulators have taken important steps to mitigate crypto risks to consumers and the economy, but safety and security issues still remain

/EIN News/ -- Toronto, Ontario, Canada, June 08, 2023 (GLOBE NEWSWIRE) -- One in 10 Canadians aged 16 and older (about 3 million people) have owned a crypto-asset such as Bitcoin, Ether or a non-fungible token (NFT). Of them, one in three (35 per cent) of crypto-owners reported at least one experience of fraud, scam or criminal victimization.

Most common were fraudulent crypto investment advisors, artificial inflation of assets through misinformation, or persons carrying out scams to access crypto wallets. Negative experiences were most common among people with lower incomes and less education. 

The findings are according to a new research report published by the Dais at Toronto Metropolitan University, and supported by Rogers Cybersecure Catalyst.

The report, Risky Business: The Cyber and Sociotechnical Security Threats of Crypto-asset Trading, is based on a mixed-method approach of an extensive literature review, and a representative survey of Canadians and their experiences with crypto-asset trading.

The country-wide survey was conducted online in October 2022 by the Dais research team with 2,000 residents in Canada aged 16 and older.

The research identifies four categories of threats to those who own crypto-assets, including examples of cyber attacks and hacks exploiting technical vulnerabilities for financial theft, data breach, and other criminal purposes.

Among the key findings: 

• One in 10 Canadians (around 3 million people) have owned a crypto-asset such as Bitcoin, Ether or NFT.
• One in three (35 per cent) of owners reported experiencing crypto fraud or scams, with higher rates among lower-income and less-educated populations. 
• A larger share of self-reported crypto owners are men, younger, university educated and higher income.
• Nearly one in five (19 per cent) owners report having been targeted with online harassment that caused them to fear for their safety, compared to 6% of those who have not owned crypto. 
• Canadians have extremely low levels of trust in crypto-asset exchanges, even before the collapse of the FTX exchange in late 2022.

“Our first report on this topic provides the latest evidence that while federal financial regulators have made commendable efforts to protect Canadian crypto-asset owners, more needs to be done to address the cybersecurity and sociotechnical threats, including enhanced public awareness of these threats, consumer protection, and deeper understanding of the groups of Canadians being harmed, said André Côté, report co-author and director of policy and research at the Dais. 

For media interviews, contact Nina Rafeek Dow, marketing and communications specialist at the Dais at Toronto Metropolitan University, nina.rafeek@torontomu.ca.

About the Dais
The Dais is Canada’s platform for bold policies and better leaders. We are a public policy and leadership institute at Toronto Metropolitan University, connecting people to the ideas and power we need to build a more inclusive, innovative, prosperous Canada. Visit dais.ca. 

About Rogers Cybersecure Catalyst
Headquartered in Brampton, Ontario, and offering programs and services across Canada, the Catalyst empowers individuals and organizations to seize the opportunities and tackle the challenges of cybersecurity. Together with our partners and collaborators, we work to realize a vision of healthy democracies and thriving societies, powered by secure digital technologies.

About Toronto Metropolitan University
Toronto Metropolitan University, formerly known as Ryerson University, is Canada’s leader in innovative, career-oriented education. Urban, culturally diverse and inclusive, the University is home to more than 48,000 students, including 2,900 Master’s and PhD students, 4,000 faculty and staff, and over 225,000 alumni worldwide. Visit torontomu.ca. 

Attachments

• Canadians' trust in offering secure and responsible technology
• Fraud or scam experiences reported by crypto-asset owners

The Dais at Toronto Metropolitan University
                    dais@torontomu.ca